Biden: cut out the middle man on student loans

Discussion in 'Politics' started by Yurt, Apr 17, 2009.

  1. Yurt
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    Yurt Gold Member

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    Biden: cut out the middle man on student loans

    ....

    Biden said work should be done to consolidate student loan programs, to cut out private student lenders who currently act as middlemen on many federal student loans. He said that could save $94 billion over a decade. "We can take the $94 billion and reinvest it in more loans, more grants and more access to college," he said.

    Biden: Cut out higher ed loan middlemen - White House- msnbc.com

    its a good idea and a good start. student loans are a flippin racket. there is no way that the cost of going to school has risen so much in so little time. but, the schools know they can simply get their students to take out high student loans. and the students willingly do so. no problem there. but cutting out the middle man on federal loans, reducing interest rates is a good start.

    IMO, the reason the cost of attending college, especially graduate college, is so high is that student loans are a money maker. the schools know they can keep raising rates because student loans cannot be defaulted on anymore. and they know that students will willingly pay more to get that higher education if they don't want to take a different route in the work field. so cutting out the middle man, sounds like a good start.

    edit:

    i'm referring only to federal loans, if you take out private loans, you pay market rates, but the government promises something different.
     
    Last edited: Apr 17, 2009
  2. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    Uh, I already had a low rate on my FAFSA loan.
    Interest rate changes on federal student loans | FAFSA Form & Financial Aid Form Blog
    On top of that, the Feds kept sending me mailers and calling me up to get me to refi that already low rate to something even lower. What's he talking about?
    FAFSA sent the checks straight to my University, who is this "middle man" Biden talks about? I don't see it in the article, someone please point it out.

    Does the Veep consider private loan companies to be the "middle men"?

    I paid off my student loan (Over $16,000) two years ago by the way, no default.
     
  3. Iriemon
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    Iriemon VIP Member

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    I paid mine too. I wonder what the default rate is on guaranteed loans.

    But get the IRS to collect the payments. They do a fair job, I've heard.
     
  4. Yurt
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    Yurt Gold Member

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    in the OP:

    Biden said work should be done to consolidate student loan programs, to cut out private student lenders who currently act as middlemen on many federal student loans. He said that could save $94 billion over a decade. "We can take the $94 billion and reinvest it in more loans, more grants and more access to college," he said.

    you bring up a good point though....is he advocating the goverment become the direct lender? seems like it. if it saves billions and the government wants to loan money to students, go for it. the government loans crazy nations money all the time, why not loan and invest in your own citizens....
     
  5. Yurt
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    Yurt Gold Member

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    i refuse to pay mine. i sent a letter to obama asking him to bail me out....

    :eusa_whistle:
     
  6. RodISHI
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    RodISHI Gold Member

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    YES! and SBA loans too!!!

    These are loans backed by the feds and the servicing fees alone will save a mint. The abuse by the major banks in these guarantee programs has gone on way to long.

    Complaints....

    It’s Official - Sallie Mae is bought out! « Student Loan Info for Parents

    Search, fraud, student loan modification and start reading the stories.


    Had to add this one for the Obama folks on here. So many people blame Bush and all Republicans for what the banks have been doing.
    Added this one for shit's & grins.
     

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